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Committee approves industrial tax exemption for Bollinger Shipyards' $33.8 million expansion
Summary
The Finance Insurance and Section 16 Lands Committee on March 18 approved an Industrial Tax Exemption Program (ITEP) request for Bollinger Shipyards LLC for a $33.8 million expansion; committee discussion addressed projected tax impacts and jobs.
The Finance Insurance and Section 16 Lands Committee of Terrebonne Parish on Tuesday, March 18, approved a resolution granting an Industrial Tax Exemption Program (ITEP) request from Bollinger Shipyards LLC for a $33,800,000 expansion (project number 20220534-ITE).
The exemption will cover 80% of the ad valorem increase tied to the expansion for 10 years; committee members were told the total value exempted is $31,117 over the life of the exemption. The committee approved the resolution by voice vote after a motion by Mister Lagarde and a second by Committee Chair Mister Crowdus; no roll-call tally was recorded in the committee transcript.
Why it matters: Committee members discussed the financial trade-offs between short-term reductions in ad valorem revenue and potential longer-term economic activity from the project. Cohen Guidry, CEO of Terrebonne Economic Development, described the size of the planned expansion and the tax math behind the request. "No, sir. $33,800,000.0 expansion," Guidry said, and told the committee the 80% exemption equates to about $216 per month in exempted ad valorem revenue to the school system over 10 years.
Bollinger Shipyards representatives said the company is bidding for government work and employs local residents. Craig Roussell, executive vice president of Bollinger Shipyards, said, "Our current head count is 208 direct employees and a 38 outside contractors," and thanked the committee for its support. He said the company is building vessels for the U.S. Navy and research vessels and is pursuing additional government contracts.
Several members pressed for context. Committee member Mister Ford said he has personal familiarity with Bollinger but said he opposes the ITEP program generally. "I've never really been a fan of the ITEP exemptions," Ford said, and added that he wants tangible evidence that exemptions benefit local stakeholders before supporting them.
Committee Chair Mister Crowdus called for any objections after discussion; with none, he declared the motion carried.
The transcript shows the request was filed before a state law change discussed by staff; the committee was told that projects filed after Feb. 24, 2024 will go to a newly created ITEP board rather than appearing before the parish bodies.
